Orchid Island Capital, Inc. [NYSE: ORC] declared the pricing of an underwritten public offering of 8,000,000 shares of its common stock. The firm is expecting a profit of nearly $44.4 million. Orchid Capital has also provided the 30-day option to an underwriter for the buying of up to an additional 1,200,000 shares of common stock.
The sole-book running manager of the firm is J.P Morgan. ORC is planning to use the profit of this offering to make an investment in Agency RMBS and for general business purposes. The firm then anticipates borrowing against the Agency RMBS that it buys with the net profit of this offering through a repurchase deal and uses the profit of the borrowings to buy additional Agency RMBS.
Shares of Orchid Island Capital, Inc. [NYSE: ORC] went up 0.17% as it gained +0.01 during the trading session of Tuesday. The firm has the last price of $5.79. In the past 52-weeks of trading, the share of the firm has wavered $1.53 from its 52-week low and $6.20 from its 52-week high.
Looking at its profitability, it has ROA, ROE, and ROI of 0.10%, 1.20%, 0.60%. It has a total market capitalization of $485.14 million at the time of writing. The offering was made following the current shelf registration statement of the firm, which was proclaimed valid by the SEC on February 10, 2020.